Good people are the greatest asset.
Given the high cost of employee turnover, effectively managing employee relations can significantly impact a business and its bottom line. Turnover involves a great deal of time, energy and lost productivity with replacement cost estimates ranging from 50 to 200% of an employee’s annual salary. This estimate represents things like publicizing the position, time spent interviewing, travel and/or relocation, a signing bonus, and pre-hiring assessments in the selection phase. Those expenditures are followed by the costs of on-boarding a new hire, including training materials and personnel, technology, benefits set up, and more. In short, a low turnover rate should be a key initiative for any business.
If you’ve ever been surprised by an employee’s resignation, you know by experience some of the challenges that resulted. Therefore, it’s imperative to be armed with the knowledge and understanding of an employee’s motivations for leaving and devise key strategies to reduce disruption and avoid the costly expense of turnover.